Each morning, Murry Preston stocks the drink case at Murry's Beach Hut in Galveston, Texas. Murry's Beach Hut has 115 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either five 12-ounce cans or four 20-ounce plastic or glass bottles. (Click the icon to view the information on the cold drinks.) The beverage stand can sell all drinks stocked in the display case each morning. Read the requirements Requirement 1. What is the constraining factor at Murry's Beach Hut? What should Murry stock to maximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day? The constraining factor is linear feet of shelf space Murry's should stock the drink with the highest contribution margin. Complete the product mix analysis to determine which product would maximize Murry's profits. Murry's Beach Hut Product Mix Analysis cola-cola bottled water 12 oz. Cans 20 oz. Bottles Sales price per unit Variable cost per unit Contribution margin per unit Units per linear foot of shelf space orange soda 20 oz. Bottles Contribution margin per linear foot of shelf space Choose from any list or enter any number in the input fields and then click Check Answer. ? 5 parts Clear All Check Answer remaining The beverage stand sells three types of cold drinks: 1. Cola-Cola in 12-oz. cans for $1.50 per can 2. Bottled water in 20-oz. plastic bottles for $1.85 per bottle 3. Orange Soda in 20-oz. glass bottles for $2.25 per bottle Murry's Beach Hut pays its suppliers the following: 1. $0.25 per 12-oz. can of cola - cola 2. $0.40 per 20-oz. bottle of bottled water 3. $0.70 per 20-oz. bottle of orange soda Murry's Beach Hut's monthly fixed expenses include the following: Hut rental.... $ 365 Refrigerator rental 85 1,500 Murry's salary 1,950 Total fixed expenses - X Requirements 1. What is the constraining factor at Murry's Beach Hut? What should Murry stock to maximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day? 2. To provide variety to customers, suppose Murry refuses to devote more than 65 linear feet and no less than 5 linear feet to any individual product. Under this condition, how many linear feet of each drink should be stocked? How many units of each product will be available for sale each day? 3. Assuming the product mix calculated in Requirement 2, what contribution margin will be generated from refrigerated drinks each day? Print Done